In defense of Delhi-NCR: A real-world lab to build

Data & Consumer Proximity 

At the time of Policybazaar’s inception, insurance penetration in India remained low and largely confined to major urban centres. Delhi-NCR stood out as a distinctive opportunity. With its dense population, sizeable white-collar workforce, and growing middle class, it offered both the demand and the scope for greater awareness around products like health and pure protection plans. Higher income levels, access to quality private health care, and a rising appetite for financial planning created the right environment for more engaged and informed insurance decisions.

Being based in this catchment area provided the company with both data and customer proximity. The geography served as a real-world lab for building products, refining communication, and scaling distribution. The region’s diversity allowed for testing strategies across income groups and areas within a single territory.

Strategic Distance  

The choice of location wasn’t just about cost or convenience, it was also about mindset. While Mumbai houses the headquarters of nearly every insurance company in the country, its proximity to legacy players can sometimes be a double-edged sword. Startups in the city often find themselves too embedded in the traditional ecosystem, leading to a more incremental approach to innovation.

Delhi-NCR offered a strategic distance, close enough to engage with insurers but far enough to think independently. This distance allowed Policybazaar challenge assumptions, build a consumer-first brand, and pursue digital distribution models that weren’t industry standard at the time. It provided room to question legacy structures and approach insurance with a fresh mindset.

Also read: In defense of Aamchi Mumbai: The can't-stop-won't-stop heart of India

Talent & Infrastructure 

While technology was always a cornerstone of Policybazaar’s model, the success of digital insurance required a strong operational backbone, from claims support and live consultations to customer servicing at scale.

Delhi-NCR offered the right mix of affordable talent, scalable infrastructure, and logistical ease to build these capabilities efficiently, enabling the company to deliver on both innovation and execution.

Stability Amid Pressure 

The decision was also rooted in human capital. Many of Policybazaar’s early investors, board members and founding employees were based in or around Delhi. Notably, Info Edge, an early investor, played a critical role not just as a source of capital but as a long-term, active board participant. Regular guidance from mentors such as Sanjeev Bikhchandani helped us pre-empt challenges. This proximity with partners, investors enabled deeper collaboration, faster problem-solving, and a strong sense of shared ownership.

Equally important, many of the founders’ families as well as those of early employees were in the region. That presence provided a layer of personal stability that’s often overlooked but deeply valuable in the high-pressure world of startups. With family close by to shoulder everyday responsibilities, it became easier for the team to stay fully focussed on building the business.

Wired for Entrepreneurship

Delhi, often underestimated in startup conversations, has quietly emerged as one of India’s most fertile entrepreneurial grounds. According to DPIIT data, as of June 30, 2024, the region had 14,734 registered startups, spanning fintech and logistics to D2C and edtech. It was, in more ways than one, the right place to challenge convention.

The region’s entrepreneurial culture also played its part. NCR has long been known for its risk-taking attitude and sales-driven business mindset. It was a region comfortable with scale, with rapid experimentation, and with the grit required to build long-lasting brands. This mindset was particularly important in the insurance sector, where distribution is often nudge-based and operational intensity plays a decisive role, Delhi-NCR offered the scale, talent, and adaptability needed to build those capabilities from the ground up.

Close To The Pulse

In the story of Policybazaar, geography wasn’t just a backdrop, it was a well-thought-out strategy. Delhi-NCR offered the scale of Mumbai and the innovation potential of Bengaluru, while providing operational leverage and customer proximity.

As digital insurance matures in India, the decision to base Policybazaar in NCR looks more like a calculated advantage. In a market where customer trust is hard-earned and harder to retain, being close to the pulse of real consumers, while staying far enough from the industry’s echo chamber, was perhaps the boldest and most underrated decision in the company’s journey.